A New Day in Home Loans - Cason Home Loans



Please Read The Next Few Pages Carefully

No Cash!

There are some rules concerning where the money for your closing costs and EMD can come

from and how it can be paid. First, you can never give your Realtor cash for the EMD or bring cash to

the closing table. Your Realtor may not realize this since this pertains to the loan and not to the real

estate transaction. Money, however, must be traceable back to its source. This means that you cannot

just take all of the money out from under your mattress and put it down on a house. In all cases you

will need to show a bank statement or transaction record.

You can get the money from the following sources: There are other sources but these are the most common

1. Your savings if the money has been in your account for more than sixty days.

2. A recent paycheck or paychecks

3. A gift from a family member or your employer

4. 401k or Money Market withdrawal

Show me the Money!

Keep in mind that we must be able to show that your money is from one of the above sources. Heres

how we do that.

● Your Savings

If you have had the money in your account for 60 days all your need is a cashiers check

and a 60 day transaction record showing the withdrawal from your account.

● Recent Paycheck(s)

If your money is coming from a recent paycheck or several paychecks then we must

show the pay stubs and the corresponding deposits into your checking or savings account. To

show these deposits we need a 60 day transaction history from your bank as described above.

● A gift from a family member or your employer

First, both you and the gift donor must fill out a gift letter for each gift they give you.

For instance, if they give you a gift for your EMD and then another for your down payment we

will need a gift letter for each of these gifts.

Second we must show that the gift donor has had the money in their account for at least

30 days and the withdrawal for the exact amount of money that they are giving you. They best

and easiest way to do this is to have the donor get a cashier’s check and then a 30 day bank

transaction record at the same time and in that order. Also, make sure that the check is made out

to you and the gift donor is listed as the remitter.

Finally, it is very important to have a copy of the above cashier’s check. When we pull

your 60 day bank transaction we will need it to document the deposit of the check into your

checking or savings account.

● 401k or Money Market withdrawal

If you are taking money from either of the two sources then we need two things. First we

need a copy of the check you receive. Second, we need a copy of the account statement from

which you took the money showing adequate funds for the withdrawal.

A Note on Bank Transaction Records

Make sure that the teller stamps and signs the history and that your name and information is on it. It is fine to print this history off of the internet as long as it shows your name and the web site address on the printed page (http://...). This rule applies to all bank records you may need to supply. Also make sure that you are provided with a full 60 days of history for your account and a full 30 days if it's a gift donors account. Keep in mind that If there are any deposits over $200 in your or the donors account then we will have to explain those as well. For instance, if your spouse is not on the loan and they

deposit their check we will need a check stub to document this.

Conclusion

All these rules come down to a few simple points summed up in the following statements.

1. If you have had the money for your EMD or cash to close for less than 60 days we must show where it came from.

2. If a family member gave you the money we must show that they have had it for the last 30 days, when they took it out and for how much.

3. If you took money out of a 401k or money market we must show a statement showing the money was in that account to begin with.

4. When a cashier’s check is used (and it should be whenever possible) we need to be able to see the withdrawal from whatever accounts it was taken. Use a 60 day transaction record (30 days for a gift donor) for this.

5. If you are not using your own money you must have a gift letter. You cannot borrow the money.

6. Whenever you handle money for your EMD, a gift or your cash to close CALL ME before you do anything.

One final Important note:

How to Handle Your Homeowners Insurance

You will need to purchase your first years worth of homeowners insurance at least 5 days before your closing date. Please note that this payment must be for 1 full year and not in installments. You may purchase your home owners insurance from the provider of your choice or I can offer you a referral if needed. If your insurance provider needs me to email your appraisal on your new home let me know.

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Jodie Hendrickson

Senior Loan Officer

Cell: (810) 691-8396

Fax: (866) 491-1853

jodie@

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